Current Trends and Figures of the housing market in Amsterdam
The Amsterdam housing market remains characterized by high demand and limited supply in July 2024. This results in a competitive market where buyers often bid more than the asking price to secure a property.
- Homes sold: 4,586 homes were sold in the second quarter of 2024, up from 3,798 in the previous quarter (Rabobank) (Hanno).
- Average transaction price: The average transaction price rose from €567,432 to €603,173 (Rabobank) (Hanno).
- Price per square meter: The price per square meter rose from €7,250 to €7,639 (Rabobank) (Hanno).
Prices per square meter per neighbourhood in Amsterdam
House prices per square metre vary considerably from one neighbourhood to another. This is strongly influenced by the location and attractiveness of the neighbourhood.
- More expensive neighbourhoods: In neighbourhoods such as the Museum Quarter, the Grachtengordel and Weteringschans, prices are above €10,000 per square meter (Rabobank) (Hanno).
- Cheaper neighbourhoods: In neighbourhoods such as Holendrecht, Bijlmer and Gein, prices remain below €4,500 per square meter (Rabobank) (Hanno).
- Average price per square meter: The average price per square meter in Amsterdam is now around €7,963 (Rabobank) (Hanno).
Outlook and Forecasts for the housing market in Amsterdam
For sellers in Amsterdam, the future of the housing market looks bright with prices continuing to rise, although the pace of these increases may vary.
- Price increases: Prices are expected to continue to rise due to the city's strong economic position, population growth and limited space for new developments (Rabobank) (Hanno) (Amsterdam at Home Makelaars).
- Investors: Investors remain interested despite new regulations, such as stricter rent rules and higher transfer tax (Rabobank) (Hanno).
- Banks Forecasts: Banks such as ABN Amro and Rabobank expect a moderate growth in housing prices for 2024, due to more stable interest rates and sustained demand (Hanno) (Rabobank) (Amsterdam at Home Makelaars).
Average rental prices in Amsterdam
Rental prices in Amsterdam have risen steadily in recent years. This is due to the constant demand for rental housing, especially from expats and students.
- Rent prices 2024: The average rent per square meter is now around €24.2, which results in almost €2,000 per month for an 80 sq m flat (Amsterdam at Home Makelaars) (Rabobank).
Impact of Mortgage Rate and Wage Development on Housing Prices
Mortgage interest rates and wage growth have a direct impact on housing affordability.
- Mortgage interest rates: After a period of rising interest rates in 2022 and 2023, interest rates stabilised in early 2024. This has led to renewed buyer confidence and a slight increase in housing prices. Higher interest rates mean that buyers can borrow less, inhibiting price increases. However, a stabilisation or fall in interest rates could lead to an increase in demand for houses and thus to price increases (Rabobank) (Hanno) (Amsterdam at Home Makelaars).
- Wage developments: Wages in the Netherlands rose by an average of 6.9% in 2023, increasing the purchasing power of potential buyers and contributing to housing demand. Further, albeit moderate, wage growth is expected in 2024, which could further support the housing market (Rabobank) (Hanno) (Amsterdam at Home Makelaars).
Impact of the Affordable Rent Act on housing and rental prices in Amsterdam
The Affordable Rent Act has only just come into force, but it is expected to have a significant impact on the proportion of rented houses compared to owner-occupied houses in Amsterdam.
To better understand the ratio, here are some key data points:
- Distribution of rental and owner-occupied houses: In Amsterdam, about 28.9% of the housing supply consists of owner-occupied houses, while the share of rented houses is significantly higher. Private rental housing accounts for about 32% of the total housing supply, and social rented housing constitutes about 40% (NUL20) (O&S).
- Middle rent share: The Affordable Rent Act focuses mainly on the middle rent segment, which currently covers about 9% of the rental market.
Housing prices
There is a possibility that rental houses in the middle segment could be sold empty. As this represents only 9% of the total number of rental properties, it is expected to have a limited impact on house prices in Amsterdam.
Rental prices
Homes in the middle segment face lower rents. While rents may become lower, this does not mean that the costs of the house itself will be lower as a result, think of gas, water, light, VvE costs, mortgage.
These very changes may lead to a shift where landlords decide to sell their rental properties due to lower returns.
One consequence of the Affordable Rent Act is that there is a clearer distinction between regulated rental properties, free sector rental properties and owner-occupied properties. Prices in the free sector rental segment may rise as this segment becomes smaller and remains less regulated (Annexum).
If landlords in Amsterdam do decide to sell their properties, this will reduce supply, which may also force tenants to look for housing in surrounding municipalities, which in turn will increase demand there (Binnenlands Bestuur) (!WOON). Landlords in these municipalities may also decide to sell their rental properties, as the Affordable Rent Act may also prove unfavourable for them.
Investment opportunities at BRXS
At BRXS, we focus on buying only rental properties that fall under the Affordable Rent Act. We look at opportunities both within and outside urban areas, as long as they meet our high quality standards we set and as long as they comply with applicable legislation.
We are convinced that rental housing in the regulated segment still offers opportunities. Through strategic investments and improvements, we can realize more stable and potentially higher returns in the long term. You can join us with as little as EUR 100 through BRXS notes.
Due to scarcity and legislation, it is important that you do your research carefully and go for stable investment opportunities.
